Different business model.
Or an alternative title – How to confuse American tourists.
I like watching reaction videos from foreigners visiting Australia and our shopping centres amaze Americans because what at first glance looks so familiar turns out to be a little bit different to what they’re used to. We don’t use the word Mall for them here, that word has a different meaning in British English.
Many of our shopping centres are huge, even by US standards, with a large variety of different speciality shops, that part fits the American model. But also in the same place will be two or three different grocery supermarkets from the major chains and that seems to raise a few eyebrows. Then they explore a little further and they see this:
Kmart is one of Australia’s most popular department stores, it’s a big business. It hasn’t been affiliated with the US company for many decades but it kept the name and the logo. Here they’re owned by the Coles Meyer Corporation, Coles is also one of the leading grocery supermarket chains and Meyer is another department store chain. In Australia the same company also owns Target and you’ll find them in most of our larger shopping centres too.
And that’s the different business model and why I think those companies are thriving here where they’re struggling in the US. In fact I think in the US Kmart is almost extinct. In the US it appears that most of these types of shops are built to stand alone, maybe a couple of other little shops next door but nothing much, where as all of ours are inside large shopping centres that also have supermarkets and butchers and everything else you could want all in the one place and they all attract each other’s foot traffic.
Almost anything you need to buy, you got to a major shopping centre for it. Need to get some keys cut, might grab a few groceries while I’m here. Need to go to my local bank branch, might have a browse through Kmart while I’m at it, and check some of the prices in the supermarket on my way out.
Another difference with our Kmart and Target – they’re specifically department stores, they don’t sell groceries or hardware and our grocery chains don’t try to be department stores either. Our supermarkets also don’t sell alcohol, you have to go to a bottle shop for that. That’s because quite often supermarkets employ staff too young to be legally serving alcohol.